First City Monument Bank Plc (FCMB) has announced its financial result for the year ended April 2007, maintaining over 100 per cent growth across all key parameters for the period. The bank has also proposed a dividend pay-out of N3.3 billion to shareholders, which represents 169 per cent increase over last year's offer.

An extract of the bank's financial report approved by the Central Bank of Nigeria (CBN), for the year under review shows that gross earnings recorded 126 per cent increase from N10.8 billion in 2006 to N24.678 billion in 2007. Profit before tax grew remarkably from N3.6 billion to N7.569 billion, indicating about 108 per cent growth rate while profit after taxation went up by 109 per cent, from N2.833 billion to N5.948 billion within the same period.

The bank's total balance sheet size equally grew by 148 per cent, rising from N106.673 billion to N262.841 billion. Cash and short term-funds went up by 76 per cent to N25.3 billion, signaling a much stronger liquidity position for the bank while total deposit appreciated by 167per cent. The bank is proposing a dividend pay out of N3.3 billion to shareholders for the period under review. This translates to 35 kobo per share.

It will be recalled that the bank's shareholders went home in 2006 with dividend in excess of N1.2 billion or 13 kobo per share, in spite of the goodwill set-off of N3.8 billion. Earnings per share at 63 kobo is 56 per cent above 41 kobo forecasted for 2007 during the last public offer, while dividend per share at 35 kobo is 75 per cent higher than the bank's forecast 20 kobo to the shareholders as contained in the 2004 offer document to subscribers.

This sterling performance, according to a statement by the bank was achieved through a combination of factors including consistent improvement in efficiency, improved asset quality, and the expansion of the business base of the bank. For instance, non-performing loan ratio dropped from 31.4 per cent to 3.2 per cent due to significant recoveries of some of the loans inherited from some of its merger partners during consolidation. Cost to income ratio was reduced from 67 per cent in 2006 to 64 per cent in 2007.